Fullerton-backed Lendingkart clocks Rs 143 Cr in H1 loss as loan defaults soar

Lendingkart, a small business lender backed by Fullerton, has reported a loss of Rs 143 crore in the first half of FY25, a significant decline from a Rs 3 crore profit in the entire previous fiscal year. The primary reason for this loss is a sharp increase in loan defaults, which pushed up credit-related losses to 5.2% of assets from 3.5% last year. The company's operating expenses also remained high. Lendingkart's asset quality issues were exacerbated by the Reserve Bank of India's (RBI) tightened rules around First Loss Default Guarantees (FLDG), impacting its Tier I capital ratio. Fullerton Financial Holdings is in the process of acquiring a majority stake in Lendingkart.